Investors' Soapbox AM

Smaller Banks to Continue Raising Dividends

Mergers and acquisitions will come to the sector later, says Credit Suisse.

June 19, 2013

Credit Suisse

In light of a steeper yield curve, we discuss implications for the small- and mid-cap banks and establish 2015 estimates.

We believe the positives outweigh the negatives for a group that has seen a protracted low-rate environment weigh on margins and profitability. Higher long-term rates should support more-favorable reinvestment rates and stronger growth prospects partly offset by weaker mortgage, deposit...